On Thursday, producers of electronics called on the government to give full support to domestic electronics manufacturing, including television production, in the vein of mobile devices.
According to them, the TV manufacturing industry has contributed around $12 billion to the economy but has not received the same incentives as the mobile phone manufacturing industry.
Director of the domestic manufacturer Videotex, Arjun Bajaj, stated that “the much-needed production-linked incentive (PLI) scheme should extend its benefits to televisions or provide alternative manufacturing incentives, particularly for smart TVs.”
Furthermore, it is out of date to classify TVs bigger than 32 inches as luxury products under the GST slab.
In India, televisions are now considered necessities in over 200 million households, no longer a luxury. Revision of this GST categorization will stimulate the business and enable a wider populace to purchase TVs, since they would become more inexpensive,” Bajaj proposed.
Critical components like semiconductors and display fabs, which are mostly sourced from China and Taiwan, are imported into the sector.
Industry participants stated that although the government has started steps to bring semiconductor production to India, it is imperative to move these initiatives along quickly and concentrate on building up homegrown capacity for making displays.
Super Plastronics Pvt Ltd (SPPL) CEO Avneet Singh Marwah stated that modifying tax bands for customers, investing in job training, and streamlining GST regulations are crucial measures.
“Retaining the 15% corporate tax rate for new manufacturing endeavors would entice foreign and domestic companies to establish operations in India.” Furthermore, the PLI scheme’s expansion into the electronics industry can support the growth of Indian manufacturers, he told IANS.
Reducing the GST rate from 28% to 18% for LED TVs larger than 32 inches is one anticipated step, according to Marwah.
“This adjustment attempts to increase consumer expenditure in the electronics industry. Adding smart TVs, refrigerators, and washing machines to PLI schemes is crucial for increasing market share and enhancing production capacity, the speaker said.
In order to keep India’s economy ranked as the third largest in the world, the budget is essential.
With the biggest proportion of young people and a $3.7 trillion contribution to the world economy out of a $100 trillion total, India offers significant unrealized potential.
